THE WORLD BANK Arab Republic of Egypt Ministry o f Water Resources and Irrigation

THE WEST DELTA WATER CONSERVATI AND

REHABILITATION PROJECT

settlement Palicy

Executive Summary &

Main Report

April 30,2007

39790

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ABBREVIATIONS

ARP ARE B C M BP CAP C M U CPA PAP DBO DRAINFRAME E ( S W ESA ESIA GoE HE&PS IBRD IWRM KM LE M&E MWRI NGO OP OPN PAD P I N P M U PPIAF PPP PVC RBHC RP RO RP RPF SPS ssc TA TOR WB WDIP WDWCIRP WUA WUO

Abbreviated Resettlement Plan Arab Republic o f Egypt Bil l ion Cubic Meters Bank Procedures Compliance Action Plan Contract Management Unit Construction Pipeline Alignments Project Affected Persons Design-Build-Operate Drainage Assessment Integrated Framework Environmental (and Social) Management Plan Egyptian General Authority for Land Survey Environmental and Social Impact Assessment Government o f Egypt Horizontal Expansion and Projects Sector International Bank for Reconstruction and Development (World Bank) Integrated Water Resources Management kilometer Egyptian Pound Monitoring and Evaluation Ministry o f Water Resources and Irrigation Non-Governmental Organization Operational Policy Operational Policy Note Project Appraisal Document Preliminary Information Notice Project Management Unit Public Private Infrastructure Advisory Facility (World Bank) Public Private Partnership Poly vinyl chloride Rosetta Branch Hydrological Change Resettlement Plan Regulatory Office Resettlement Plan Resettlement Policy Framework Supplementary Pumping Station Supplementary Supply Canal Technical Assistance Terms o f Reference World Bank West Delta Irrigation Project West Delta Water Conservation and Rehabilitation Project Water Users Association Water Users Organization

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LIST OF FIGURES Page

Figure 1: Location Map o f Project Area West o f the N i le Delta Figure 2: Preliminary Lay-out o f the Project Area

10 11 30 Figure 3. West Delta Water Conservation and Irrigation Project Organization

LIST OF TABLES Table 1 : Comparison o f Egyptian regulations with World Bank policies Table 2: Gaps between Egyptian regulation and World Bank policy related to

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Entitlement 22

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TABLE OF CONTENTS ABBREVIATIONS ............................................................................................................ 2 LIST OF FIGURES ........................................................................................................... 3 LIST OF TABLES ............................................................................................................. 3 TABLE OF CONTENTS .................................................................................................. 4 EXECUTIVE SUMMARY ............................................................................................... 6 1 INTRODUCTION ................................................................................................... 11 2 DESCRIPTION OF THE PROJECT .................................................................... 11

2.1 PROJECT RATIONALE AND OBJECTIVES ............................................................... 11 2.2 PROJECT COMPONENTS ....................................................................................... 14

3 POTENTIAL PROJECT IMPACTS CAUSING RESETTLEMENT ............... 16 CATEGORIZATION OF IMPACTS BY TYPE OF SUB-PROJECTS ................................. 18 CATEGORIZATION OF PROJECT LAND NEEDS ....................................................... 18

LEGAL AND INSTITUTIONAL BACKGROUND ............................................ 18 4.1 INTRODUCTION ................................................................................................... 18 4.2 4.3 INSTITUTIONAL BACKGROUND ............................................................................ 19 4.4 WORLD BANK SAFEGUARD POLICY ON INVOLUNTARY RESETTLEMENT .............. 20 4.5 GAPS BETWEEN EGYPTIAN REGULATIONS AND WORLD BANK POLICIES ............. 21 4.6 REGULATORY PRINCIPLES .................................................................................. 22 4.7 PROCESSES ......................................................................................................... 25

5 ENTITLEMENTS ................................................................................................... 26 6 VALUATION AND COMPENSATION RATES ................................................. 27

3.1 3.2

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PROPERTY RIGHTS AND EXPROPRIATION WITHIN THE EGYPTIAN CONSTITUTION1 9

6.1 VALUATION AND COMPENSATION OF LANDS AND STRUCTURES ACCORDING TO EGYPTIAN REGULATIONS ................................................................................................ 28 6.2 VALUATION AND COMPENSATION OF STRUCTURES ............................................. 29 6.3 VALUATION OF LOSSES OF INCOME FOR BUSINESSES .......................................... 29 6.4 DISTURBANCE ALLOWANCE ................................................................................ 30

GRIEVANCE MANAGEMENT AND REDRESS MECHANISMS ................. 30 REGISTRATION OF GRIEVANCES .......................................................................... 30

8 VULNERABLE GROUPS ...................................................................................... 31 IDENTIFICATION OF VULNERABLE GROUPS .......................................................... 32 ASSISTANCE TO VULNERABLE PEOPLE ................................................................ 32 PROVISIONS TO BE MADE IN Rps/ARps .............................................................. 32

MONITORING AND EVALUATION .................................................................. 32 CONSULTATION AND DISCLOSURE .......................................................... 33

7 7.1 7.2 ADMINISTRATIVE MECHANISM AND APPEAL TO COURT ...................................... 31

8.1 8.2 8.3

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10.1 CONSULTATION ON THE RESETTLEMENT POLICY FRAMEWORK .......................... 3 3 10.2 CONSULTATION ON RPs AND ARPs ................................................................... 33 10.3 DISCLOSURE REQUIREMENTS .............................................................................. 34

11 IMPLEMENTATION RESPONSIBILITIES .................................................. 35 11.1 IMPLEMENTATION RESPONSIBILITIES ................................................................. 35

12 BUDGET AND FUNDING FOR RESETTLEMENT ..................................... 36 13 RECOMMENDATIONS .................................................................................... 37 14 DOCUMENTATION .......................................................................................... 38 ANNEX 1: LAND TENURE AND RELATED LAWS TO LAND AND STRUCTURES EXPROPRIATION ............................................................................. 39 ANNEX 2: THE CURRENT GRIEVANCE PROCEDURES UNDER EGYPTIAN LAWS AND REGULATIONS ....................................................................................... 44 ANNEX 3 OUTLINE OF A RESETTLEMENT PLAN ........................................ 46 ANNEX 4:OUTLINE OF AN ABBREVIATED RESETTLEMENT PLAN ............. 49

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EXECUTIVE SUMMARY

Introduct ion

This executive summary presents the main findings o f the Resettlement Policy Framework (RPF) prepared for the West Delta Water Conservation and Irrigation Rehabilitation Project (WD WCIRP) and summarizes the key recommendations. This project i s partly financed by the World Bank and as such will have to comply with both applicable Egyptian laws and regulations and the World Bank safeguard policy on involuntary resettlement (OP 4.12). The objective o f the RPF i s to present resettlement objectives and principles, organizational arrangements and funding mechanisms for any resettlement or land acquisition that may be necessary during project implementation.

Project description

The Project proposes to implement a surface water conveyance system in a concession area o f 80,000 ha with available funding to finance connection o f up to 38,000 ha that constitute part o f the southern part o f the West Delta area'. The surface water will be distributed over the area by a buried pipeline network. The preliminary lay-out i s derived from the Technical Study o f the preparation team and may be changed by the Design Build Operate (DBO) contractor based on detailed surveys, assessments, and optimal design needs. A main pumping station takes the required water from the Rayah e l Nasseri (main canal). The Government o f Egypt will construct a new supplementary pumping station on the Rosetta Branch, to replenish the Rayah e l Nasseri.

Project Development Objective

The development objective i s to achieve financial sustainability o f irrigation infrastructure in the West Delta and promote greater efficiency in the use o f water resources established through a public-private partnership and farmers participation.

Project components:

Component No. 1: Design, Construct, and Start Up o f the Surface Water System, and connection program for participating fa rms (US$205 million). Component No. 2: Market-driven Technical Assistance to Small and Medium Scale Farmers (US$2 million). Component No. 3: Support for Institutional Development and Capacity Building o f Project Management Unit, Regulatory Office and Water User Organization (US$5 million)

The southern part o f the Project Area i s estimated to include approximately 190,000 feddans o f the total 255,000 referenced. Most o f the area i s cultivated by commercial farms uti l iz ing modem irrigation and farming techniques. Financial sustainability o f this transaction can be assessed through the participation o f a relatively manageable number o f farms in the proposed area.

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Project organization

Overall direction will be provided by the MWRI and managed on a day-to-day basis by a Project Management Unit (PMU). Since the project will be implemented using a DBO contract with the private sector, the establishment o f an Economic Regulatory Office will be necessary. Both the P M U and the Regulatory Office will be under the jurisdiction o f MWRI. A Water User Council has been established as an independent farmers’ organization that wil l monitor relationships and potential conflicts between farmers.

Potential project impacts causing resettlement

The PMU i s responsible for a.0. co-ordination, oversight, and monitoring o f the Environmental and Social Framework Management Plan.

The WDWCIRP potentially triggers the safeguards policy on involuntary resettlement (OP 4.12) in different ways:

1. The excavation o f the pipeline alignments throughout the project area. (CPA for construction o f pipeline alignments) and associated infrastructure.

2. The pipeline may place restrictions on the use o f the land within the corridor, and if incomes and l iv ing standards are negatively affected, compensation i s warranted.

3. The construction o f new roads and modernization o f existing ones. 4. The rising water levels in the Rosetta Branch, caused by increasing discharges required

for the project, may affect the existing uses and users o f the river banks. (RBHC for Rosetta Branch Hydrological Change).

Legal and Institutional Background

According to Law 10/1990, the Egyptian Authority for Land Surveying (ESA) i s mandated to deal with overall coordination o f expropriation and resettlement in collaboration with other ministr ies or local governmental bodies. In this case the MWRI at the national and governorate level would be the appropriate contact point for the D B O contractor.

Targeted Beneficiaries for RPF

The people eligible for resettlement assistance according to OP 4.12 include:

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those who have formal legal rights to land and structures (including customary and traditional rights recognized under the laws o f Egypt); those who do not have formal legal rights to land or structures at the time o f the cut- o f f but have a claim to such land or assets, provided that such claims are recognized under the laws o f Egypt or become recognized through a process identified in the resettlement plan. those who have no recognizable legal right or claim to the land or structures they are occupying.

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Compensation, valuation, grievance and redress mechanism and vulnerable groups

The main compensation principles are:

Compensation shall be paid prior to displacement / land entry; Compensation will be at full replacement value prior to displacement.

In contrast with the depreciated or net value o f a structure, the “replacement value” includes the full cost o f materials and labor required to reconstruct a building o f similar surface and standrd. In other words, the affected person must be able to have their structure rebuilt in a different location using the compensation paid for the old building.

For grievance and redress, the framework highlights the Egyptian practice and compares i t with the WB OP 4.12 and calls for Governorate intervention in areas where important gaps exist.

The Egyptian regulation does not specifically state any privileges for vulnerable groups. However, the World Bank OP 4.12 emphasizes the need to do so. Vulnerable groups are those at risk o f becoming more vulnerable due to the displacement, compensation, and resettlement process. Assistance to vulnerable people i s a prerequisite for World Bank financed projects and may take the form of: assistance in the compensation payment procedure; assistance in the post payment period to secure the compensation money and reduce risks o f misuse/robbery, and assistance in moving. Each RP or ARP developed under the WDWCIRP will make precise provisions with respect to assistance to vulnerable groups.

Monitoring and Evaluation

The following monitoring and evaluation activities need to be undertaken by the project:

Implementation o f the Resettlement Plans by the Regulatory Office in coordination with the Governorates (see implementation responsibilities for details). Internal monitoring and supervision by the Regulatory Office will verify that all prerequisites to the resettlement activities are met and that al l procedures for resettlement have been carried out in accordance with the provision o f this Policy Framework. It should also be verified that the funds for implementing the Resettlement Plans are provided in a timely manner. All grievances should be recorded and disputes be handled properly. An assessment will be made if the Policy Framework objectives or enhancement or at least restoration o f l iv ing standards and income levels o f DAPs have been met. Gather qualitative information on the social and economic impact o f Project Implementation on the DAPs.

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Consultations

As provided under WB policy OP 4.12, information and consultation on the WDWCIRP Resettlement Policy Framework shall be organized as follows:

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Circulation o f the draft RPF for comments to a l l relevant institutions. Communication o f comments to the Consultant for incorporation into a final RPF, together with WB comments. Presentation o f the executive summary o f the draft RF'F to Regulatory Office and MWRI concerned by the Project.

During the preparation o f RP/ARP two types o f information and consultation are required:

0 Init ial information:

- This step should coincide with the cut-off date (information should not be delivered in advance o f the cut-off date to avoid encroachment o f new arrivals); Basic information will be provided to potentially affected people on the Project, and resettlement and compensation principles as they are outlined in this RPF; This step should take the form o f one public meeting for each sub-project.

- - Consultation on draft RP/ARP should be initiated once these documents are available in draft form, they should be discussed with local authorities (e.g. District executive and elected Cauncils) and affected communities, whose comments will be incorporated in the final documents.

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Disclosure requirements

The Egyptian legal requirements for disclosure are stated in L a w 10/1990. OP 4.12 states that the Resettlement Policy Framework should be made available at a place accessible to displaced persons and local NGOs, in a form, manner, and language that are understandable to them.

Implementation Responsibilities

Specific responsibilities for implementation o f the RPF and subsequent R P s are as follows:

0 MWRI will attach to the bidding document, (i) a copy o f the RPF; (ii) available maps o f the areas showing the boundaries o f the properties in private and public lands; (iii) information on the standard market rate determined by a independent assessor acceptable to the Bank, for market prices o f new reclaimed lands, old lands in the Delta and along the Rosetta canal. The bidding document will also require that the bidders should pay the agreed market price in case full expropriation o f land i s required and /or temporary or partial land acquisition.

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The bidders in their technical and financial proposal, will describe the areas to be expropriated or acquired temporarily in accordance with the RPF and will also provide the cost for such expropriation and a draft RP’s. The Bank will provide i t s no objection to the successful bidder provided it fully complies with the RPF and the draft resettlement plans prepared by the successful bidder. The contract should stipulate that no c iv i l works can start until the project affected persons (PAPs) are fully compensated at market rate. After contract signature and immediately after the subscription period, the D B O contractor will officially submit to MWRI the project alignment and the necessary documentation, including system alignment for their review and approval. MWRI will be responsible to proceed and complete the expropriation process in accordance with the RPF and RPs. Final RP’s are submitted for approval as well. Once the expropriation/ land acquisition process i s officially completed, MWRI will require that the D B O contractor provide PAPs the full amount o f compensation before issuing the working orders for construction. MWRI will submit to the Bank in i t s semi annual progress report, the status o f expropriatiordland acquisition and compensations.

With regard to the Rosetta Branch the MWRI will be responsible for R P s as necessary. The Regulatory Office under the MWRI will be responsible for: monitoring and making sure the project activities are being implemented as designed. The P M U will ensure adequate implementation o f TA components for strengthening the Regulatory Office, and the Water User Council as wel l as the initiatives directed at assisting small farmers.

Financial aspects

The budget for mitigation and compensation o f the expropriation and eventually other resettlement cost will come under the DBO contract. The resettlement that may be generated by the water level r ise in the Rosetta Branch will be financed by the Government o f Egypt.

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1 INTRODUCTION

The objective o f the Resettlement Policy Framework (RPF) i s to present resettlement objectives and principles, organizational arrangements and funding mechanisms for any resettlement or land acquisition that may be necessary during the implementation o f the West Delta Water Conservation and Irrigation Rehabilitation Project (WDWCIRP). This project i s partly financed by the World Bank and as such will have to comply with both applicable Egyptian laws and regulations and the World Bank safeguard policy on involuntary resettlement (OP 4.12). Individual resettlement plans consistent with the policy framework will be submitted to the Bank for approval after more specific and detailed project and planning information becomes available. This RPF has been prepared in conjunction with the Environmental and Social Impact Assessment and Environmental and Social Management Plan.

This document has been prepared by a team o f Egyptian and Dutch experts that included Dr. Fatma Attia, Groundwater Specialist, Egypt; Dr. Hussam Fahmy, Director, Drainage Research Institute, Egypt; Dr. Manal Eid, Social Scientist, Egypt; Ir. Jan Hoevenaars (ed.), Environmental Consultant; and Dr. Roe1 Slootweg, Environmental Consultant.

2 DESCRIPTION OF THE PROJECT 2.1 Project rationale and objectives

The project area i s located between Cairo and Sadat City at both sides o f the Desert Highway Cairo-Alexandria (Figure 1). The surface water will be distributed over the area by a buried pipeline network. The preliminary lay-out i s derived from the Technical Study o f the preparation team and may be changed by the Design Build Operate (DBO) contractor. A main pumping station with a capacity o f about 22 m3/s takes the required water from the Rayah e l Nasseri (main canal). The Government o f Egypt will construct a new supplementary pumping station on the Rosetta Branch, to make up for the additional water requirements o f the projects and re f i l l the Rayah e l Nasseri and Nubariya main canals. Figure 2 shows the preliminary layout o f the surface water supply system where available funding would be covering 38,000 hectares as part o f a concession covering up to 80,000 hectares.

Project Development Objective - Financial sustainability o f irrigation infrastructure in the West Delta and for greater efficiency in the use o f water resources established through a public-private partnership and farmers participation.

The Government o f Egypt (GOE) has supported commercial farmers in reclaiming desert lands since the late 1960s in order to compensate for the loss o f agricultural land in the Delta, and to provide opportunities to generate new jobs, increase production and widen the development base. As part o f i t s continuing endeavor to improve water use efficiency and sustainable development, the Ministry o f Water Resources and Irrigation i s considering a plan for improving irrigation water availability to part o f the new lands in the West o f the N i l e Delta. This relates to areas currently depending entirely on ground water for irrigation. In this context, an area o f about 100,000 ha (equivalent to 255,000 feddans), located

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approximately 60 kilometers north o f Cairo to the West o f the lower N i l e Delta, has experienced noticeable agricultural growth through exploitation o f groundwater resources.

ISRD 341 1

ARAB REPUBLIC OF EGYPT WEST DELTA WATER CONSERVATION

AND IRRIGATION REHABILITATION PROJECT LOCATION OF EXTENDED PROJECT AREA WITHIN THE NILE DELTA

t A L ' L CANALS 6 0 SELECTED CITIESANDTOWNS PERENNIALRIVERS ANDMKES B GOVERNORATE CAPITALJ INlERMITlEN1 RIVERS AND LAKES bp NATIONAL CAPITAL MARSH GOVERNORATE BOUNDARIES OEIIAARFA - - INTFRNA'IONAL BOUNQARIFS

F i g u r e 1: Locat ion Map of Project A r e a W e s t o f t h e N i l e Del ta

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IBRD 341 14

ARAB REPUBLIC OF EGYPT WEST DELTA WATER CONSERVATION

AND I R R I GAT I 0 N R E H A B 1 11 TAT! 0 N PRO J E CT PROJECT AREA

PKOIKTAZfA

Figure 2: Preliminary Lay-out o f the Project Area

Today, the West Delta area i s a flourishing agricultural economy estimated between $300 mil l ion to half billion dollars annually, serving both domestic and export markets in the European Union and elsewhere, entirely from groundwater. Moreover, the area i s now home to 500,000 people and provides about 250,000 jobs in the agriculture sector alone. However, with the rapid development over the past few years, there has been an excessive depletion o f the groundwater reserves. With about 47% o f the total 100,000 hectares (ha) under cultivation, water extraction by the year 2002 reached 1,080 mil l ion m3 annually, or an increase o f 36.2% in jus t over a decade. Groundwater i s quickly depleting’ with a commensurate effect on overall water quality, posing a substantial threat to the farming economy that has been developed over the years.

The West Delta Water Conservation and Irrigation Rehabilitation Project i s GOE’s response to solve the problem o f excess groundwater exploitation and to foster continued agricultural growth, employment and investment in the area. The Project proposes to implement a surface water conveyance system extracting water from the N i l e River and

I t i s estimated that the groundwater recharge rate i s extremely l ow (around 20 mi l l ion m’/year> implying an 2

almost complete depletion o f reserves in the near term at current extraction rates.

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initially to connect commercial farmers in the southern part o f the “Project Area”3. In achieving this objective the Government also intends to introduce important reforms in the sector, particularly to charge farmers for the full cost o f service through volumetric pricing. Such reforms are part o f the Government’s own Integrated Water Resources Management (IWRM) Action Plan developed in 2005 to ensure correct incentives to conserve and utilize water more ef f ic ient~y.~

Beyond i ts objective to achieve full cost recovery, the Government also wishes to involve the private sector in the design, construction and operation o f the new irrigation system and to share certain responsibilities for financing the investment costs, thus bearing certain risks as well as returns from this undertaking. While the Government fully endorses the Project and i s wil l ing to source a substantial amount o f the related investment financing, i t desires to assign responsibilities to the Private Operator for the design, construction, operations and maintenance o f the activity and for it to assume the implementation and other related risks o f these activities.

2.2 Project components

The project’s total investment cost for Component No. 1 i s US$205 million, o f which a World Bank loan will finance US$145 million, an AFD loan will finance US$30 mi l l ion with the remainder sourced from the farmers and the private operator. In addition, an additional US$8 mi l l ion will be made available f rom bilateral donor grants for Components Nos. 2 and 3.

Component No. 1: Design, Construct, and Start Up o f the Surface Water System, and connection program for participating farms (US$205 million). - This component will finance activities leading to the final design and construction o f a surface water irrigation system for the project area o f an order o f rnagnitude36,OOO ha in the West Delta. Init ial design work was carried out during the technical preparation studies which were based on a “demand-driven approach to planning” where the growers’ willingness to connect and pay guided the technical design options with commensurate tariffs. Final design will be completed by the private operator that will be contracted to construct and operate the system on a long te rm lease basis. A fixed allocation o f water resource will be made available by the government to the project area, based on the estimated average annual requirement o f 13,000 m3 per year per ha. The preliminary design o f the system has been sized to meet the peak demand in the summer months. Over the entire year, total usage converges to the annual average. Based on this, it i s anticipated that the surface water system would meet most o f the water resource needs o f the farms that will be connecting, allowing the aquifers to recharge and to benefit farmers in adjacent areas. This component will also finance on-farm

The southern part o f the Project Area i s estimated to include approximately 76,000 ha. Most o f the area i s cultivated by commercial farms utilizing modem irrigation and farming techniques. Financial sustainability o f this transaction can be assessed through the participation o f a relatively manageable number o f farms in the proposed area.

The Government i s implementing a cost recovery pol icy in the old lands to recover O&M costs. In the newly reclaimed lands, it i s seeking to further expand this principle to achieve higher and even full cost recovery levels in irrigation services.

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infrastructure at the option o f small farmers in order to expedite their connection rates to the surface water system.

Component No. 2: Market-driven Technical Assistance to Small and Medium Scale Farmers (US$2 million) - This component will provide: (i) technical assistance (TA); and (ii) limited financial support, in the form o f loan facilitation, to small and medium growers, traders, food processors, to increase West Delta products (fresh or processed) market share on national and international markets. The component will provide technical assistance to small and medium size growers, traders, exporters and food processors in the following areas:

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production, post harvest technology and farm management to small and medium size growers to improve competitiveness and quality o f products, market intelligence (for local and export market) and logistics to small growers, traders and exporters, to look for new market opportunity and/or increase market share, food processing, packing and marketing to food processors, to improve competitiveness and/or create new food products, organizational arrangement for growers, traders and/or food processors to work in a coordinated manners within formal or informal organizations to achieve economy o f scale and improve supply chain competitiveness.

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Component No. 3: Support for Institutional Development and Capacity Building o f Project Management Unit, Regulatory Office and Water User This component will be funded through donor grants by the Government o f the Netherlands and will support capacity building o f MWRI for PPP contract management, Construction Supervision Consultant, regulatory oversight, and to the user association along the lines o f the policies for institutional reforms proposed by the MWRI and in cooperation with the Government o f The Netherlands. In addition, i t will support activities to disseminate on possible replication o f the adopted PPP approach to other areas in Egypt and i ts riparian neighbors.

The main capacity building activities financed under this component include: (i) strengthening the P M U and the contract management activities that will oversee contractual matter between the Government and the private operators on al l aspects o f the implementation phases, including environmental and social safeguard compliance during the implementation o f the project inclusive o f groundwater monitoring; (ii) capacity building o f economic regulatory office to ensure effective regulatory oversight and equitable treatment o f interests between the farmers and the private operator; and (iii) capacity building o f the water user association that will be formed to oversee the relationship between farmers vis-&vis entitlements and usage o f the surface and ground water resources. Given the unique nature o f the PPP transaction arrangement the TA will also provide for oversight supervisory engineers and technical audits o f technical milestones achieved.

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(OP 4.12) in different ways:

POTENTIAL PROJECT IMPACTS CAUSING RESETTLEMENT The WDWCIRF' potentially triggers the safeguards policy on involuntary resettlement

1. The excavation o f the pipeline alignments throughout the project area. (CPA for construction o f pipeline alignments) and associated infrastructure.

2. The pipeline may place restrictions on the use o f the land within the corridor, and if incomes and l iv ing standards are negatively affected, compensation i s warranted.

3. The construction o f new roads and modernization o f existing ones. 4. The rising water levels in the Rosetta Branch, caused by increasing discharges required

for the project, may affect the existing uses and users o f the river banks. (RBHC for Rosetta Branch Hydrological Change

The extent to which site-specific resettlement plans will be prepared will depend upon (i) the detailed design o f the pipeline alignments and roads (to be carried out by the D B O contractor at a later stage); (ii) location o f new and upgraded roads in the project area; and (iii) detailed assessment o f the RBHC.

A) Alignment of pipe system and additional measures

0 Based on earlier technical and environmental studies a choice has been made to convey all water within the project area by closed conduit.

A summary overview o f temporary or permanently affected lands, based on the preliminary design from the technical study for southern sector (S 01 - 10):

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Main intake + pump house. Booster stations. 1 Mains booster station and 52 sub-mains booster stations + pump house + workshop + access road (6m) + electricity feeder l ine Electricity supply: A new transformer substation i s needed to feed the intake pumping station and the intermediate boosters. 126 km o f new power lines will be constructed.

Mains: Fourteen mains serve the south zone with a total length o f 154,5 km. Their diameters range between 2200 and 1200 mm. The number o f parallel pipes for the carrier mains range from 6 (5 km) to 4 (16 km) to 2 (8 km). Some area i s required for different valve chambers along the mains. These chambers are required for control valves at each main ends, air valves if required and drain valves. Sub-mains: 250 km o f ps PVC sub-mains Wher distribute water. Diameters rage from 900mm at the start to 300mm at the end. Farm connections: about 920 km o f 200 mm diameter pvc pipe bring water to the farm gates. Roads system: includes the improvement o f the existing road system especially earth roads, This system i s essential to reach a l l boosters and pump stations. A first degree road system 10.0 m width at least will connect the intakes, intermediate boosters and

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sub-main boosters. A second degree road system 6.0 m width at least will reach till the farm connections.

Potential resettlement issues

0 Expropriation. A limited surface area needs to be expropriated for permanent use for main intake, pump house, 52 booster stations, and valve chambers.

0 Compensation for temporary disturbance. During construction o f pipelines lands will temporarily be put out o f use for construction purposes. Obviously the construction o f mains and sub-mains will have the biggest impact, simply because o f the size o f the pipes and the amount o f earth works required to burry these. For example, the f i r s t 5 km o f mains will include 6 parallel pipes o f 2000mm diameter, buried at 1,5 m below the surface. This implies the removal o f some 30 m3 o f earth for each meter o f pipeline.

0 Rights-of-way: Land owners have to give rights-of-way for pipes to pass under their lands. All pressurized pipes within the project have a soil cover o f 1.5 m at least to allow traffic load and even enough depth for agricultural activities. Right o f way also needs to be arranged for the crossing o f power lines.

0 Restrictions on use o f land: The pipeline may place restrictions on the use o f the land within the corridor, and might in some cases permanently constrain activities such as cultivation o f tree crops. Because they can affect incomes and living standards limitations on use may in some cases warrant compensation.

0 Roads. As stated a network o f roads i s needed to service the pipeline infrastructure, from intake to fam connections. Very few public roads exist in the area (see map below, but many local private roads have been constructed. At the present stage o f design it i s impossible to provide any sensible comments on the adequacy o f the existing road network and the demand posed by the project.

The involuntary character o f the impacts created by the closed conduit system will have to be determined as many o f the affected farmers in the West Delta area will also act as beneficiaries o f the project. The major problem o f course l ies with those farmers not wi l l ing to connect to the surface water supply system, and consequently neither willing to accept any inconveniences caused by the project.

B. Inundation o f Rosetta Branch banks and islands

The changing hydrological conditions in the Rosetta Branch with the WDWCIRP will result in higher water levels. Since flooding disappeared after construction o f H igh Aswan Dam the river banks and islands have been encroached for cultivation, legally or illegally, by small-holders. One can also find buildings at places which erstwhile were not suitable for construction. Depending on the rise o f the water levels between Delta Barrage and the Rosetta Pumping Station, part o f the land and buildings may get inundated and be lost.

Potential resettlement issues

0 Legally or illegally occupied land for agriculture along or in Rosetta Branch.

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a Legal or illegal constructions l ike houses, ferry ramps and the like.

3.1 Categorization of impacts by type of sub-projects

Due to a lack o f information on the components which may entail resettlement, it has not been possible at this stage to quantify the impacts on assets and livelihoods caused by the proposed project. It should be noted that in order to quantify these impacts, the detailed studies o f these components should include:

Detailed maps showing the extensions o f roads and/or infrastructure networks, right-of- ways, parts require widening, structures located on these proposed extensions and right- o f ways,

Number o f housing u n i t s and other economic u n i t s existing in these affected structures , Total areas o f land subjected to expropriation, Land tenure status o f those subjected to expropriation, Socio-economic surveys for those affected households and economic units, Information about land value in adjacent or neighboring areas.

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As soon as the above information i s available Resettlement Plans will be prepared as necessary.

3.2

Land required for the Project may fall under the following three categories:

Categorization of Project land needs

Land permanently required for construction and operation. Land temporarily required for the duration o f construction activities (example: access track that will be reclaimed after construction, or staging area that a contractor will use for the duration o f construction o f a given facility). Rights-of-Way, i.e. land that can s t i l l be used by i t s former users during operation o f the facility subject to certain restrictions (example: pipeline corridor).

4 LEGAL AND INSTITUTIONAL BACKGROUND 4.1 Introduction

This part explains the current legal and institutional framework governing the resettlement activities in Egypt. It analyzes the various laws and legislations managing the issue o f expropriation for public interest whether for land or structures. It also shows the operational procedures stated within Egyptian laws that should be followed during the expropriation process and methods o f estimating the compensations for those affected persons by displacementhesettlement.

According to Law 10/1990 the Egyptian Authority for Land Surveying (ESA) i s mandated to deal with overall coordination o f expropriation and resettlement in collaboration

18

with other ministries or local governmental bodies. In this case the MWRI at the national and governorate levels would be the appropriate contact point for the DBO contractor. The preparation o f Resettlement Plans/Land Acquisition plans will be made by the DBO contractor and submitted to MWRI for review and approval. (See section 4.7)

4.2 Property Rights and Expropriation within the Egyptian Constitution The Egyptian Constitution recognizes three main types o f ownership. Article 29 o f the

1971 Constitution provides that “ownership is subject to the control o f the people, i s protected by the State and i s divided into three types: public ownership, co-operative ownership, and private ownership”.

Article 34 o f the Constitution further provides that “private ownership i s protected and may not be sequestrated except in the cases provided by law pursuant to a court decision and may not be expropriated except for public interest against compensation determined pursuant to the law”.

Expropriation can be exercised only with respect to real property and not moveable property. The term real property means, “Anything that i s fixed in i t s space affirmed therein, which may not be moved without being damaged.” Accordingly, real property includes only land (whether agricultural or vacant, whether in urban or rural areas) and buildings above this land.

Expropriation can only be exercised with respect to real property belonging to private persons (individuals or corporate) or to State private property. State public property may not be expropriated; rather the concerned administrative parties would enter into an agreement with respect to such property either by divesting the property in question from i t s public characterization or by re-appropriating the said property to another public use or entity. The regulations on land tenure and related laws to land and structures expropriation are summarized in Annex 1

4.3 Institutionalbackground At the central level, the governmental agency in charge o f the implementation o f the

expropriation acts issued for public interest i s the Egyptian General Authority for Land Survey (“ESA”), except for projects handled by other entities pursuant to a law to be issued in this respect. As mentioned above, ESA i s charged with the formation o f the expropriation and compensation committees.

Usually the executing body could be a Ministry (e.g., Ministry o f Water Resources and Irrigation). Accordingly, this executing agency would be responsible for paying the compensation to affected groups through ESA or under i t s supervision, offering alternative resettlement options, and implementing the resettlement project.

9 Directorate of Housing and Infrastructure i s responsible for setting the alternative resettlement options for the affected group and participate in all operational procedures concerning defining compensation and setting improvement actions within informal settlements.

19

Department of Physical Planning this department i s responsible for preparing the detailed plans for areas subjected to resettlement and provide a l l detailed maps and documents required to define the affected groups (e.g., roads right-of-ways, Set- backs) Department of Amlak i s responsible for providing all required documents for ownerships or tenure status within the affected areas with al l attached historical documents for those properties that show the different transactions o f the properties. Department of Land Surveying i s the main responsible body for defining the size, area ad locations o f different ownerships to be affected by the resettlement. It i s also responsible for defining the compensation mechanisms and values in cooperation with ESA and other relevant local bodies. Department of Social Affairs i s responsible for conducting all f ie ld surveys required to define the affected groups, their socio-economic status, affordability level, their preference against different resettlement options and compensations mechanisms. Another major role to be played by this department i s to mitigate the negative impact o f resettlement whether during or after resettlement, through preparing rehabilitation programs for those affected group, and monitoring the impact o f the process. Department of Legal Affaires, deals with legal issues related to tenure and ownerships and resolve dispute between different involved parties. Head of District where the resettlement project takes place i s to manage the overall project. This may be the case if resettlement becomes real along the Rosetta Branch.

World Bank safeguard policy on involuntary resettlement

OP 4.12 “Involuntary Resettlement” includes the following requirements:

Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable alternative project designs. Where it i s not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits. Displaced persons should be meaningfully consulted and should have opportunities to participate in planning and implementing resettlement programs. Displaced persons should be assisted in their efforts to improve their livelihoods and standards o f living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning o f project implementation, whichever i s higher.

According to OP 4.12, the resettlement plan or resettlement policy framework should include measures to ensure that the displaced persons are:

0

Informed about their options and rights pertaining to resettlement; Consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; Provided prompt and effective compensation at full replacement cost for losses o f assets attributable directly to the project; and

20

0 If the impacts include physical relocation, the resettlement plan or resettlement policy framework includes measures to ensure that the displaced persons are:

Topic

1 provided assistance (such as moving allowances) during relocation; and 2 provided with residential housing, or housing sites, or, as required, agricultural sites

for which a combination o f productive potential, location advantages, and other factors i s at least equivalent to the advantages o f the old site.

Egyptian legislative requirements

Where necessary to achieve the objectives o f the policy, the resettlement plan or

a) offered support after displacement, for a transition period, based on a reasonable estimate o f the time likely to be needed to restore their livelihood and standards o f living; and

b) provided with development assistance in addition to compensation measures, such as land preparation, credit facilities, training, or j ob opportunities.

resettlement policy framework also includes measures to ensure that displaced persons are:

Timing o f compensation payment Calculation o f compensation

Squatters

Resettlement

4.5 Gaps between Egyptian regulations and World Bank policies

Prior to displacement

According to prevailing prices in the affected area and assessed by a specialized committee for that purpose

Not included in the legislation (Applied cases for resettlements revealed that squatters have been compensated as a result of political sensitivity) Affected occupants who are physically displaced are to be provided with another residential housing. They do not have the rights to object the location o f the resettlement but only the housing suitability in terms of area, design or relevant issues. Their objection i s submitted within 15 days after receiving the notification o f the new housing, to a dedicated

Table 1: Comparison o f Egyptian regulations with World Bank policies

WB policy requirement

Prior to displacement

Full replacement cost

Are to be provided resettlement assistance (but no compensation for land)

Affected people who are physically displaced are to be provided with residential housing, or housing sites, or, as required, agricultural sites at least equivalent to the old site. Preference to be given to land-based resettlement for displaced persons whose livelihoods are land-based. The resettlement would be based on RPs in case there the

Practical Implications

Compensation should be paid prior to displacement for affected people

This issue i s crucial since previous practices of valuation have been substantially below the market rate due to:

Lackof experience No real market rate i s defined

This has to be clearly considered in any resettlement and offered options whether through alternative shelters or fair compensation that enables project affected people to find other shelter.

Affected people should be offered various options for resettlements (not only one option) at least equivalent to the old property or site.

The affected people should also be supported with a soft-loan that compensates the difference in value between the old and new property. Both RP and ARP should be followed in relevant cases.

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Resettlement assistance

Vulnerable groups

Information & consultation

Grievances

committee for that purpose, which should respond in one month. Not included

N o t specifically included

Displaced persons are provided timely and relevant information. Not consulted on resettlement options Not able to participate in planning, implementing and monitoring resettlement

Specialized committees for that purpose and time

Four months to object

One month to object the decision o f resettlement One month to object the decision o f resettlement

the compensation value

affected people i s 200 or more while for less than 200, an ARP would be conducted Affected people are to be offered support after displacement, for a transition period. Particular attention to be paid to vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, indigenous peoples, ethnic minorities.. . Displaced persons and their communities (. . .) are provided timely and relevant information, consulted on resettlement options, and offered opportunities to participate in planning, implementing, and monitoring resettlement. Appropriate and accessible grievance mechanisms to be established. RP should specify grievance procedures available to project-affected people.

This assistance should be included in any resettlement project through the Governorate

For the West Delta this wil l probably not be an issue as the owners o f the land live somewhere else and the rest o f the area i s virtually uninhabited.

Affected groups should get access to full information about the resettlement process and options for compensation. Participatory planning and decision making should be applied in resettlement options and compensation

There i s a need for ensuring that affected groups offered the direct channel for grievance and receive redress in proper time prior to resettlement. The receiving of full compensation should be prior to resettlement.

4.6 Regulatory Principles

Preamble

Any impact o f the WDWCIRP on land, structures and/or people (land acquisition, resettlement, livelihood restoration o f affected people) will be addressed in compliance with the Constitution o f Egypt and other Egyptian regulations, and with the World Bank safeguard policy on involuntary resettlement (OP 4.12). Where there are gaps or inconsistencies between Egyptian legislation and the World Bank policy, the World Bank policy OP 4.12 shall apply.

4.6.1 Minimization o f Displacement

In line with the World Bank safeguard policy OP 4.12, the WDWCIRP will minimize displacement through the following design procedures:

Wherever inhabited dwellings may potentially be affected by a component or a project activity, the project activity shall be redesigned (facility relocation, rerouting) to avoid any impact on such dwellings and to avoid displacementhelocation accordingly; Wherever the impact on the land holding o f one particular household i s such that this households may not be sustainable in the long term, even if there i s no need to

22

physically displace this household, the activity shall be redesigned (facility relocation, rerouting) to avoid any such impact; For major works, minimization o f land impact will be factored into site and technology selection and design criteria; Costs associated with displacement and resettlement will be internalized into activity costs to allow for fair comparison o f processes and sites; To the extent possible, project facilities will be located on public spaces; Pipelines, other linear infrastructures (power lines) required by the WDWCIRP will be routed inside existing right-of-ways, easements or reservations (roads, streets, power lines) wherever possible.

These principles intend to minimize negative impacts. However, it will not be always feasible to avoid displacement or land acquisition. In addition to impact minimization measures, mitigation measures are therefore needed.

4.6.2 Eligibility

In accordance with OP 4.12 and for any activity under the WDWCIRP, a cut-off date will be determined, taking into account the likely implementation schedule o f the sub-project. To ensure consistency between Egyptian legal requirements and WB policies, this cut-off date should be at one month prior to the publication o f the expropriation decree for public interest.

In l ine with OP 4.12, the following three categories o f affected people will be eligible to Project resettlement assistance:

a) those who have formal legal rights to land and structures (including customary and traditional rights recognized under the laws o f Egypt);

b) those who do not have formal legal rights to land or structures at the time o f the cut- o f f but have a claim to such land or assets, provided that such claims are recognized under the laws o f Egypt or become recognized through a process identified in the resettlement plan

c) those who have no recognizable legal right or claim to the land or structures they are occupying.

Persons covered under (a) and (b) above are provided compensation for the land and/or structures, they lose, and other assistance as needed.

Persons covered under (c) above are provided resettlement assistance in l ieu o f compensation for the land and/or structures they occupy, and other assistance, as necessary, if they occupy the project area prior to the cut-off date.

In practice, this means that people usually considered in Egypt as “squatters” will be entitled to Project assistance as long as they are present on site at the cut-off date. However, persons who encroach on the area after the cut-off date are not entitled to compensation or any other form o f resettlement assistance.

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4.6.3 Income and livelihood restoration

One paramount principle o f World Bank safeguards i s that where people are affected by land take, the aim o f resettlement must be that they should be “no worse-off if not better off’ after the resettlement has taken place.

Where impact on land use i s such that the sustainability o f people’s livelihoods may be affected, preference will be given to land-for-land solutions rather than cash compensation, in consistency with the Constitution o f Egypt and with OP 4.12. This applies to people who are not necessarily physically displaced, but who are negatively affected by loss o f land.

Where necessary, affected people will be monitored in the rehabilitation o f their livelihood, during and after the transition period.

Livelihood restoration measures will be assessed in relevant R P s and AWs depending upon the specific situation o f the considered location. They may include the following:

Micro-finance support (savings and credit), and other small business development activities, Skill development and training to build their capacities on new vocations.

4.6.4 Compensation

Compensation principles will be as follows:

Compensation shall be paid prior to displacement / land entry; Compensation will be at full replacement value prior to displacement.

By contrast with the depreciated or net value o f a structure5, the “replacement value” includes the full cost o f materials and labor required to reconstruct a building o f similar surface and standing. In other words, the affected person must be able to have their structure rebuilt in a different location using the compensation paid’for the old building.

4.6.5 Consultation - Grievance mechanisms

Gaps between the Egyptian law requirements and World Bank requirements on consultation and information, as well as those related with grievance management exist. The application o f these will require:

meaningful information and consultation to take place before the process leading to displacement i s launched in each particular location concerned by a sub-project;

Depreciation (or wear) coefficients are usually applied by Government valuers. This would not be acceptable under WB policies

24

e

4.7

4.7.1

e

e

e

e

e

e

e

e

e

e

e

e

e

e

e

e

e

e

e

e

4.7.2

a specific grievance registration and processing mechanism to be put in place.

Processes

Overview o f the resettlement preparation process

The proposed process for project components i s summarized as follows:

Preliminary siting and/or routing o f sub-proj ect; Preliminary reconnaissance o f resettlement; Application o f national legislation; Notification to identified owners/occupants; Period o f registration o f claims start; Valuation o f land and immoveable assets.

Assess whether more or less than 200 individuals are affected.

If more than 200 people are affected:

Definition and public disclosure o f cut-off date; Init ial information to affected people; Census o f affected people and affected assets; Development o f resettlement plan (RP); Consultation with affected community o f RP; Presentation o f RP to World Bank; Implementation o f RP

If less than 200 people are affected:

Definition and public disclosure o f cut-off date; Init ial information to affected people; Census o f affected people and affected assets; Development o f abbreviated resettlement plan (ARP); Consultation with affected community o f ARP.; Presentation o f ARP to World Bank; Implementation o f ARP

Census o f Affected Assets and Affected Households

In all events, a census will be carried out to inventory affected assets and affected households.

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4.7.3 Resettlement Plan (RP)

The Resettlement Plan will be used where more than 200 individuals are displaced. All R P s need World Bank approval prior to commencing resettlement activities. R P s need to be developed once the final design o f the works i s known and prior to their commencement. Ideally, a time period o f 2 to 3 months should be made available for consultants to develop R P s prior to actual work commencement.

4.7.4 Abbreviated Resettlement Plan (ARP)

It i s generally the practice to carry out an Abbreviated Resettlement Plan where less than 200 individuals are resettled. The project must keep documentation and provide reports that detail what actions were taken in these areas. All ARPs need Wor ld Bank approval prior to commencing resettlement activities. As for RP, ARPs need to be developed once the final design o f the works i s known and prior to their commencement. Ideally, a time period o f 1 to 2 months would be required to develop ARPs.

Regardless o f specific approach applied (RP or ARP), the L a w 10/1990 mandates the Egyptian Authority for Land Surveying (ESA) to deal with overall coordination o f expropriation and resettlement in collaboration with other ministries or local governmental bodies. In this case the MWRI at the national and governorate levels would be the appropriate contact point for the D B O contractor. The preparation o f Resettlement Plans/Land Acquisition Plans will be made by the D B O contractor and submitted to MWRI for review and approval. MWRI will be responsible for the overall expropriation process based on the RPF and R P s and all payments o f compensations will be made by MWRI which in turn will be reimbursed by the D B O contractor (See Section 11.1 for specific implementation responsibilities).

5 ENTITLEMENTS The Egyptian laws and regulations state that formally affected owners or formal

occupiers are only entitled for compensation. The laws showed that they are entitled to physical compensation whether through offering alternative shelter or equivalent remuneration to their original properties.

While, the Egyptian laws do not state any formal right for squatters, the World Bank OP 4.12 gives those squatted households entitlements for shelter and compensation for involuntary resettlement. This may be applicable for the users o f the Rosetta Branch river banks. Accordingly, WDWCIRP would provide al l affected groups from any proposed involuntary resettlement, with proper entitlements.

Table 2 analyses the gaps between Egyptian rules and Wor ld Bank requirement. In case o f differences, the World Bank requirements will prevail.

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Table 2: Gaps between Egyptian regulation and World Bank policy related to Entitlement

Entitlement Cases

Permanent acquisition o f land

Acquisition o f easement

Entitlement in Egyptian Regulation Full payment according to prevailing prices in the date o f the decree

Compensation through rights

Temporary occupation o f

equivalent value (usually value i s determined below real market value)

N o compensation

Destruction o f permanent immovable structures

Temporary displacement

land

Determination o f price per room or area (usually the compensation below actual market value). Tenants get the options for acquiring alternative shelter but paying the difference in price. N o entitlement for

Businesses

o f moveable structures

Entitlement for compensation determined by a committee (usually below market value)

compensation

L I

Entitlement according to Wor ld Bank Policy Full value o f the land based o n price o f similar land in adjacent areas.

Full value o f the land based on price o f similar land in adjacent areas.

Full value o f economic return (assuming that the land has been rented o n market basis) within the occupation period. Full cost o f the structure (without applying any depreciation) including internal finishing. Both owner and tenants get full compensation.

Estimated value o f using this moveable structure wi th in the displacement period. Compensation i s based on area, location, license, practice o f activity, internal or external finishing together w i th compensation for establishing new business

6 VALUATION AND COMPENSATION RATES Compensation principles will be as follows:

Gaps to be considered

- The real market value should be defined as the basis for compensation.

mechanisms for defining real value.

- The real market value should be defined as the basis for compensation.

mechanisms for defining real value.

- The real market value should be defined as the basis for compensation.

- Need for clear

- Need for clear

- The real market value should be defined as the basis for compensation.

- Estimated value o f using this moveable structure within the displacement period.

- The real market value should be defmed as the basis for compensation.

0

Compensation shall be paid prior to displacement / land entry; and Compensation will be at full replacement value prior to displacement.

27

For land it i s the pre-displacement market value o f land o f equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity o f the affected land, plus the cost o f any registration and transfer taxes.

For houses and other structures, it i s the market cost o f the materials to build a replacement structure with an area and quality similar to, or better than, those o f the affected structure, or to repair a partially affected structure, plus the cost o f transporting building materials to the construction site, plus the cost o f any labor and contractors’ fees, plus the cost o f any registration and transfer taxes.

By contrast with the depreciated or net value o f a structure, the “replacement value” includes the full cost o f materials and labor required to reconstruct a building o f similar surface and standing. In other words, the affected person must be able to have their structure rebuilt in a different location using the compensation paid for the old building.

6.1 Valuation and compensation of lands and structures according to Egyptian regulations

Determination o f the compensation to be given to expropriated property owners and holders o f rights therein i s made at two separate levels. The first i s made by the Expropriating Entity in order to meet the requirement that the estimated compensation amount i s deposited with ESA prior to proceeding with the remaining formalities as described in the preceding section. The second level i s a review o f that estimated compensation by the Compensation Estimation Committee within ESA.

The first level, as stated in Article 6 o f L a w 10/1990, requires the Minister o f Water Resources and Irrigation to form a Committee within each governorate to be charged with the determination o f compensation (this contradict with Article 47 o f L a w 3, 1982 which authorized the concerned Governor to formulate this committee!). The Committee shall be composed o f a representative o f ESA as chairman and the membership o f representatives o f certain departments within the governorate: the Agricultural, Housing and Infrastructure, and the Real Estate Tax Departments (in law 3, 1982, the committee i s headed by the representative o f Housing department and includes representative o f Surveying Department, Real Estate Tax Department, Land Registration Department and local unit).

Compensation i s determined pursuant to prevailing prices at the time the expropriation decree i s issued and the estimated compensation amount shall be deposited with ESA within one month from the date o f such decree. It i s possible, if approved by the property owners or right holders to obtain in-kind compensation either in full or in part.

The second level i s conducted by ESA. The Compensation Estimation Committee within ESA makes a final administrative determination o f the compensation to be granted to property owners and rights’ holders after having received a consultative report from the General Department for Appraisal within ESA.

All concerned parties, including the Expropriating Entity, have the right to object to the compensation determined in accordance with the foregoing rules before ESA and,

28

thereafter, to ESA’ ruling on the objection before the competent court. The following section describes the objection procedures.

The following rules concerning the determination o f the compensation for expropriation o f ownership are worth noting:

Should the value o f the un-expropriated part o f the expropriated property increase or decrease due to the public interest works in projects other than zoning projects within cities, such decrease or increase shall be taken into consideration when determining the compensation amount. Compensation i s determined in accordance with Article (20) o f L a w 10/1990 on the basis o f prevailing prices at the date o f issuance o f the expropriation decree in question. The committee and the courts would look to expert opinion in determining the prevailing prices, taking into account prices stated in recorded contracts. Should the value o f the expropriated property increase due to prior public interest works in a previous project, such increase shall not be calculated in determining the compensation value if expropriation i s exercised within 5 years from the date o f executing the previous public interest project. Compensation under Law 3/1982 can be in one o f two ways: (i) taking the value o f the property; or (ii) postponing the taking o f such value in full or in part until all or part o f the area in question i s sold. In such event, the owner or holder o f rights deserves compensation equal to the said value in proportion to the total value o f the properties in question together with one-half o f the difference between the two values after deducting the costs o f executing the project.

According to World Bank OP 4.12, R P s and ARPs state clearly which methods are used to calculate land and/or structure compensation rates, and provide evidence that these rates are consistent with the “full replacement value” requirement. This issue i s crucial for WDWCIRP, as previous experiences show that estimated market price has been less than full replacement cost.

6.2

affected structure with the full cost.

Valuation and compensation of structures The Egyptian regulation matches with WB OP 4.12 in the need to compensate any

The value o f structures that are to be demolished because o f any proposed action by the project i s to be assessed by professional valuers, either f rom the Egyptian General Organization for Surveying “ESA”, or from private offices certified by ESA. Structures will be valued at full replacement cost, according to methods that will be detailed in the relevant R P s or ARPs.

6.3

1.

Valuation of losses of income for businesses The method should be the following:

Estimate o f net monthly profit o f the business, based on records if any, on operator’s statements, cross-checked by an assessment o f visible stocks and activity,

29

2. Application o f this net monthly profit to the period during which the business i s prevented to operate (should be between 2 and 6 weeks in most cases).

6.4 Disturbance allowance

Although Egyptian regulation does not specify such type o f compensation, however following the WB OP 4.12, on top o f compensation, a disturbance allowance o f 10% o f total compensation would be served as per the eligibility matrix . 7 GRIEVANCE MANAGEMENT AND REDRESS MECHANISMS

In compensation and resettlement operations, i t often appears that many grievances derive from misunderstandings o f the Project policy, or result from neighbor conflicts, which can usually be solved through adequate mediation using customary rules. Most grievances can be settled with additional explanation efforts and some mediation. This i s why a f i rs t instance o f dispute handling will be set up with the aim o f settling disputes amicably.

Annex 2 highlights the Egyptian practice and compares it with the WB OP 4.12. In Egypt, Court cases are known to require long periods o f time before settlements can be reached. It i s therefore proposed here to make available a f i rs t t ier o f grievance management mechanisms, which will be taken care o f by the Project, and which will provide aggrieved people with an avenue for amicable settlement without necessarily opening a Court case. Aggrieved people would however remain free to open a Court case without having registered their grievance with this first-t ier mechanism. Based on this context and WB OP 4.12, the proposed mechanism will comprise o f the following measures:

Registration, Amicable mediatiodlitigation and settlement.

7.1 Registration of grievances

As long as one o f their activities entails resettlement and/or compensation, the WDWCIRP implementation agencies shall establish preferably at district level a register o f resettlement/compensation related grievances and disputes. The existence and conditions o f access to this register (where, when, how) shall be widely disseminated within the community/town as part o f the consultation undertaken for the sub-project in general.

Amicable mediation and settlement

A committee o f knowledgeable persons, experienced in the subject area, shall be constituted on a District as a Committee to handle grievances. This group o f mediators attempting amicable mediatiodlitigation in f i rs t instance will consist o f the following members:

Head o f District Legal advisor Local Representative within the Elected Council Head o f Community Based Organization 2 natural leaders from the community

30

This mediation committee will be set up at District level by the implementation agency on an “as-needed” basis (Le. it will be established when a dispute arises in a given community).

When a grievance/dispute i s recorded as per above-mentioned registration procedures, the mediation committee wil l be established, and mediation meetings will be organized with interested parties. Minutes o f meetings will be recorded.

The existence o f this f i rs t instance mechanism will be widely disseminated to the affected people as part o f the consultation undertaken for the sub-project in general.

I t i s important that these mediation committees be set up as soon as RP/ARP preparation starts. Disputes can arise from census operations and it i s therefore that the mediation mechanisms be available to cater for claims, disputes and grievances at this early stage.

7.2 Administrative mechanism and appeal to Court

Thanks to the existence o f the f irst t ier mechanism, Courts o f law will be a “last resort” option, which in principle should only be triggered where f i rst instance amicable mechanisms have failed to settle the grievance/dispute. However, the Constitution allows any aggrieved person the right o f access to Court o f law as described by Law 10/1990 as follows:

0

0

0

0

8

The concerned owners and holders o f rights have the right, within 30 days from the date o f posting and publishing the l is ts and information o f the expropriated properties, to object to the information contained in such lists. The objection i s made to the main offices o f the Expropriating Entity or the administration to which it i s attached within the governorate in which the property i s located. The ruling o f the Expropriating Entity on the objection can be appealed to the court o f f irst instance within whose jurisdiction the expropriated property is located. The appeal must be made within 60 days from the date o f notifying the concerned parties with the Expropriating Entity’s ruling on their objection. The Expropriating Entity and the concerned owners and holders o f rights have the right within 4 months from the last date on which the l is ts and other information are posted (1 month after the posting date) to object to the determination o f compensation by ESA before the competent court o f first instance. A l i s t o f properties for which no objection or appeal i s made shall be prepared. N o objection or dispute may thereafter arise with respect to these particular properties. Payment made to the owners and holders o f rights in these properties shall be conclusive as to the fulfillment o f the Expropriating Entity’s payment obligations.

VULNERABLE GROUPS The Egyptian regulation does not specifically state any privileges for those vulnerable

groups. However, the World Bank OP 4.12 emphasizes the need to.

31

8.1 Identijkation of vulnerable groups

Vulnerable groups are those at risk o f becoming more vulnerable due to the displacement, compensation, and resettlement process. Vulnerable people specific for the WDWCIRP include, but not limited to:

0

0

0

8.2

0

Smallholders in the Old Lands Fishermen on Rosetta Branch Customary right holders Squatters on the banks o f Rosetta Female Headed Households

Assistance to vulnerable people

Assistance to vulnerable people may include the following:

Identification o f vulnerable people and identification o f the cause and impacts o f their vulnerability. Identification o f required assistance at the various stages o f the process: negotiation, compensation, moving. Implementation o f the measures necessary to assist the vulnerable person. Monitoring and continuation o f assistance after resettlement and/or compensation, if required.

Assistance may take the following forms, depending upon vulnerable persons’ requests and needs:

Assistance in the compensation payment procedure (e.g., going to the bank with the person to cash the compensation check). Assistance in the post payment period to secure the compensation money and reduce risks o f misusehobbery. Assistance in moving: providing vehicle, driver and assistance at the moving stage;

8.3 Provisions to be made in RPs/ARPs

Vulnerable people will be identified at census stage. Each RP or ARP developed under the WDWCIRP will make precise provisions with respect to assistance to vulnerable groups, for example amongst assistance possibilities listed above in paragraph 8.2.

9 MONITORING AND EVALUATION

project: The following monitoring and evaluation activities need to be undertaken by the

32

Implementation o f the Resettlement Plans will go regularly supervised and monitored b y the P M U in coordination with the Governorate. The finding will be recorded in reports to be furnished to the World Bank and one to the PMU. Internal monitoring and supervision by the PMU will:

- Verify that the baseline information o f all project affected persons (PAPs) has been carried out and that the valuation o f assets lost or damaged, and the provision o f compensation, resettlement and other rehabilitation entitlements have been carried out in accordance with the provision o f this Policy Framework. Oversee that the Resettlement Plans are implemented as designed and approved. Verify that the funds for implementing the Resettlement Plans are provided in a timely manner, and that such funds are used by them in accordance with the provisions o f the Resettlement Plan. Record all grievances and their resolution and ensure that complaints are dealt with in a timely manner. An independent agency or agencies will be retained by the Governorate to periodically carry out external monitoring and evaluation o f the implementation o f the Resettlement Plans. The independent agency may be an academic or research institution, a non-governmental organization (NGO) or an independent consulting firm, all with qualified staff and terms o f reference acceptable to the World Bank.

- Determine whether the procedures for PAPs participation and delivery o f compensation and other entitlements have been done in accordance with this policy Framework and the respective Resettlement Plan; Assess if the Policy Framework objectives or enhancement or at least restoration o f living standards and income levels o f PAPs have been met;

Gather qualitative information on the social and economic impact o f Project

- -

- -

-

Implementation on the PAPs.

Evaluation o f resettlement activities will be part o f general assessment and review activities undertaken for the Project as a whole.

10 CONSULTATION AND DISCLOSURE 10.1

WDWCIRP Resettlement Policy Framework shall be organized as follows:

Consultation on the Resettlement Policy Framework

As provided under WB policy OP 4.12, information and consultation on the

Circulation o f the draft RPF for comments to all relevant institutions. Communication o f comments to the Consultant for incorporation into a final RPF, together with WB comments. Presentation o f the executive summary o f the draft RPF to P M U and MWRI concerned by the Project.

10.2 Consultation on R P s and ARPs As mentioned in section 4.9.2 (Figures 1 and 2), two steps o f information and

consultation are proposed to be implemented in the course o f the preparation o f R P s and ARPs:

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0

0

10.3

Init ial information:

- This step should coincide with the cut-off date (information should not be delivered in advance o f the cut-off date to avoid encroachment o f new arrivals), Basic information will be provided to potentially affected people on the Project, and resettlement and compensation principles as they are outlined in this WF, This step should take the form o f one public meeting for each sub-project,

-

-

Consultation on draft RP/ARP: once these are available in draft form, they should be discussed with local authorities (e.g. District executive and elected Councils) and affected communities, whose comments will be incorporated into final documents.

Disclosure requirements The Egyptian legal requirements for disclosure as stated in L a w 10/1990 can be

explained in the following steps:

After depositing the compensation amount by the expropriating entity with ESA, the concerned local office l i s t s o f all real properties and facilities being identified shall be prepared, their areas, location, description, names o f their owners, and holders o f property rights therein, their addresses, and the compensation determined by the compensation estimation committee. ESA shall thereafter officially notify the property owners, other concerned parties and the expropriating entity with the dates on which the l is ts prepared in accordance with the preceding paragraph shall be presented to them, at least 1 week prior to such presentation. These l is ts will be posted for a period o f 1 month in the offices o f the concerned local government unit and shall also be published in the official gazette and two widespread daily newspapers. Owners o f the properties and holders o f rights therein shall be officially notified with an evacuation request within a period not to exceed 5 months f rom the date o f their notification.

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World Bank OP 4.12 states that:

"As a condition o f appraisal o f projects involving resettlement, the borrower provides the Bank with the relevant draft resettlement instrument which conforms to this policy, and makes it available at a place accessible to displaced persons and local NGOs, in a form, manner, and language that are understandable to them. Once the Bank accepts this instrument as providing an adequate basis for project appraisal, the Bank makes it available to the public through i ts Infoshop. After the Bank has approved the final resettlement instrument, the Bank and the borrower disclose it again in the same manner."

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11 IMPLEMENTATION RESPONSIBILITIES 11.1 Implementation Responsibilities

Whi le the Government fully endorses the Project, it i s also keen to share the implementation and other related risks; and to assign responsibilities for the operations, maintenance and loan amortization to a private operator. Using the private sector as a partner through Public Private Partnerships (PPP) i s a concept that has been studied and i s included as a specific action in the 2005 Egypt Integrated Water Resources Management (IWRM) Action Plan, specifically for addressing the needs o f the West Delta Area6.

I I I I

Panel

Figure 3. West Delta Water Conservation and Irrigation Project Organization

I I I Project Management

Unit (PMU) I--.

World Bank (June 2005). Project appraisal document for the West Delta Water Conservation and Irrigation Rehabilitation Project

Regulatory Office

35

Responsibilities for implementation o f the RPF and subsequent R P s are as follows:

e

e

e

e

e

e

e

MWRI will attach to the bidding document, (i) a copy o f the RPF; (ii) available maps o f the areas showing the boundaries o f the properties in private and public lands; (iii) information on the standard market rate determined by a independent assessor acceptable to the Bank, for market prices o f new reclaimed lands, old lands in the Delta and along the Rosetta canal, The bidding document will also require that the bidders should pay the agreed market price in case full expropriation o f land i s required and /or temporary or partial land acquisition. The bidders in their technical and financial proposal will describe the areas to be expropriated or acquired temporarily in accordance with the RPF and will also provide the cost for such expropriation. Draft RP’s will be submitted with bids. The Bank will provide i ts no objection to the successful bidder provided i t fully complies with the RPF and the draft resettlement plans prepared by the successful bidder. The contract should stipulate that no c iv i l works can start until the project affected persons (PAPs) are fully compensated at market rate. After contract signature and immediately after subscription period ends, the D B O contractor will officially submit to MWRI the necessary documentation including RP’s for their review and approval. MWRI will be responsible to proceed and complete the expropriation process in accordance with the RPF and RPs. Once the expropriation/ land acquisition process i s officially completed, MWRI will require that the DBO contractor provide PAPs the full amount o f compensation before issuing the working orders for construction. MWRI will submit to the Bank in i ts semi annual progress report, the status o f expropriatiodland acquisition and compensations.

The MWRI will be responsible for resettlement plans as necessary along the Rosetta Branch. The Regulatory Office under the Ministry o f Water Resources and Irrigation will be responsible for: (i) monitoring and making sure the project activities are being implemented as designed; (ii) ensuring compliance with contract clauses vis-A-vis the Government by the private operator. The P M U will (iii) ensure adequate implementation o f TA components for strengthening the Regulatory Office, and the Water User Council as well as the initiatives directed at assisting small farmers.

In order to facilitate the implementation o f this process it i s critical that all involved parties and the affected farmers in particular are involved in a thorough process o f consultation prior to bidding.

12 BUDGET AND FUNDING FOR RESETTLEMENT

The budget for mitigation and compensation o f the expropriation and eventually other resettlement cost for the pipelines and roads alignments will come under the D B O contract.

The resettlement that may be generated by the water level r ise in the Rosetta Branch will be financed by the Government o f Egypt.

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Detailed cost estimates for the pipelines and roads alignments will fo l low from the RPs prepared by the DBO contractor. The assessment that will be done on hydrological changes o f Rosetta, will include a resettlement plan if the conclusions o f the assessment dictate so

13 RECOMMENDATIONS Resettlement should be an integral part out o f an overall improvement project. With

respect to operational procedures, the following steps regarding methods and procedures for evaluating assets affected by expropriation should be taken:

As soon as the subscription period ends and before detailed design starts, more specific information on resettlement and/or land expropriation requirements, if any, will be available. In the layout that should be available before detailed design activities starts the operator will strive for options with least expropriation impact on private land and least disturbance o f any nature. The relevant office for legislation and compensation applies to the Governorate for permission to expropriate. They annex to the letter the full rationale together with sketch maps. No further actions may be taken without the express consent o f the MWRI at the national and governorate levels. Upon review o f the evidence, and on finding the application justified, the Governorate gives permission to the relevant office for legislation and compensation to expropriate with the consent o f the owner and to pay agreed compensation. The details o f planned expropriation will be considered in a Resettlement Plan as appropriate. The MWRI in cooperation with the Regulatory Office in case o f pipelines and roads alignments, and with the Project Management Unit in case o f RBHC, ensures that Resettlement Plans conform to the requirements o f Egyptian law and the World Bank’s policy. The document i s transmitted to the World Bank who determines whether the plan conforms to Bank requirements for financing.

0

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14 DOCUMENTATION

A.R.E. Minisin o f Water Resources and Irrigation (2005’). Integrated Water Resources Management Plan A.R.E. Minisin o f Water Resources and Irrigation, PlanninP Sector (2005). National Water Resources Plan

Nasser A m a n 2005. Technical study. World Bank 2005. Conceptual Framework and Transaction Model for a Public-Private Partnership in Irrigation

World Bank. Operational Manual on OP4.01, OP4.04,OP4.09,0P4.12 and OPN 11 -03. Information on

Worldbank (2005). WDWCIARP Drainframe Analysis, Main Report, by F. Attia, H. Fahmi, G. Gambarelli, J.

Worldbank (2002). The World Bank Policy on Disclosure o f Information, June 2002 World Bank. Operational Policy No. 17.50 Public Consultation and Information Disclosure A.R.E. Law 10/1990 for Property Expropriation for Public Interest. A.R.E. Law 10/1990 for Property Expropriation for Public Interest World Bank (2007). Draft Project appraisal document on a proposed loan to the Arab Republic o f Egypt for the

2017: Water for the Future.

in the West Delta, Egypt. Draft report.

WWW.Worldbank.org/projects/policies and procedures/ as per September 4,2006.

Hoevenaars, R. Slootweg and S. Abdel Dayem.

West Delta Water Conservation and Irrigation Rehabilitation Project (February 27,2007) By: Sustainable Development Department Middle East and North Africa Region.

*

MWRI (2005). Integrated Water Management Action Plan.

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ANNEX 1: LAND TENURE AND RELATED LAWS TO LAND AND STRUCTURES EXPROPRIATION

There are three main forms o f land ownership in Egypt:

Public or State land (in Arabic Amlak Amiriya), which is divided into the State’s public domain that cannot be alienated and the State’s private domain, which can be alienated generally through sale, lease, Takhssiss (Le. transfer o f ownership conditional on meeting certain criteria, such as keeping the land use unchanged and paying the remaining installments o f the land price) or through Haq Intifaa (i.e. usufruct); Private land (in Arabic Mulk horr), which may be alienatedhransferred freely; and Waqfland (land held as a trust/endowment for religious or charitable purposes), which i s often subject to covenants on transfer or use, and which i s typically transferred through leasehold or usufruct.

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In addition, there are some areas in Sinai and in the northern coast, in Alexandria and Matruh Governorates, with implicitly recognized customary rights to land to the benefit o f Bedouins. In these areas, someone wishing to acquire land often has to make two payments, f i rs t to the Bedouin claimant(s) for the right o f use and then to the State to regularize and register their land tenure/ownership and be able to obtain services.

I t i s important to note that the C iv i l Code (No. 13 1 o f 1948) recognizes Hiyaza (Le. possession o f immovable/movable property without ownership) as a legitimate channel to acquire ownership o f the property in question through adverse possession, provided that the Hiyaza has been “peaceful, unchallenged and uninterrupted” for a period o f 15 years. By Law, ownership through adverse possession does not, however, apply to State lands. The large majority o f land in Egypt i s public or State-owned desert land that i s for the most part undeveloped (estimated to be 90-95% o f the national territory).

Within the framework o f the Constitution, the Civil Code, in articles 802-805 concerning private property, has recognized the private ownership tight. Article 802 has stated that the owner, pursuant to the law, has the sole right o f using and/or disposing his property. In Article 803, land ownership has been defined as land with al l things above and below it and pursuant to the law, the property o f the surface may be separated from the property o f what i s above or below it.

Then, Article 805 provides that “No one may be deprived o f his property except in cases prescribed by law and this would take place with an equitable compensation.” As mentioned above, the Constitution prohibits the expropriation o f private property except for public interest against compensation determined pursuant to the law. L a w 10 o f 1990 concerning the Expropriation o f Ownership for Public Interest was issued to reflect this constitutional mandate. In addition, expropriation o f property i s further regulated by L a w 59 of 1979 concerning the Establishment o f New Urban Communities and L a w 3 o f 1982 concerning Urban Planning.

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0

0

0

0

0

0

0

rn

0

The t e r m “public interest” in the context o f expropriation has been defined in Article 2 o f Law 10/1990. The Article specifies the acts that are considered for public interest. These include: Constructing, widening, improving, or extending roads, streets, or squares, or the construction o f new districts. Water supply and sewage projects. Irrigation and drainage projects. Energy projects. Construction or improvement o f bridges, cross roads for railway and tunnels, Transportation and telecommunication projects. Urban planning purposes and improvements to public utilities. Other acts considered as acts for public interests mentioned in other laws.

In addition, other laws have also added some acts which are as follows:

Law 3 o f 1982 concerning Urban Planning added to the foregoing l i s t acts aiming at the establishment o f green areas and public parking. Prime Ministerial Decree No. 160 o f 1991 added to the l i s t the establishment o f governmental educational buildings. Prime Ministerial Decree No. 2 166 o f 1994 further added fishery farms established by ministries, governmental departments, local government units, and public authorities.

Article 2 o f law 10, 1990 further delegates the Cabinet o f Ministers to add other acts to the foregoing list. Expropriation may not be limited to those land or buildings directly subjected to the previous acts but it could includes also any other neighboring properties that are deemed useful for the acts.

Law 10, 1990 has described the expropriation procedures as follows:

The procedures start with a declaration o f public interest pursuant to a Presidential Decree accompanied with a memorandum on the required project and a complete plan for the project and i t s buildings (Law 59/1979 and Law 3/1982 provide that the Prime Minister issues the decree). The decree and the accompanying memorandum must be published in the Official Gazette. A copy for the public i s placed in the main offices o f the concerned local government unit.

Based on that, the operational steps go as follows:

The entity requesting the expropriation o f the ownership o f a real property for public interest (“Expropriating Entity”) submits a memorandum with the request to the President or the Prime Minister (if a delegation o f authority by the President i s granted). The Egyptian General Authority for Land Survey (“ESA”) has been defined as the Expropriation Entity, except for projects handled by other entities pursuant to a law to be issued in this respect. The memorandum would explain the reasons for the request, stating the compensation to be offered to the concerned owner o f the property, together with evidence that the

40

compensation amount has been issued in the form o f a bank check in favor o f Egyptian General Authority for Land Survey "ESA:.

The compensation i s usually determined in accordance to the prevailing price for land surrounding the expropriated land (the market price). These prices are taken f rom recorded contracts in the Real Estate & Authentication Offices. However, usually this entails a crucial problem that always faces such expropriation projects, as these prices are, in most cases, not real, since the parties to the contracts usually state lower prices in order to reduce charges and fees decided on the basis o f data recorded in the contracts. Also it should be noted that the representatives o f ESA are assumed to be experts in evaluating land prices. If approved, the President or the Prime Minister would issue the required decree declaring the property in question appropriated in the public interest and authorizing taking the property pursuant to direct enforcement procedures by the Expropriating Entity. Once the authorizing decree i s published, the concerned Expropriating Entity i s authorized to enter into the property in question in the case o f long-term projects and after giving notice o f i t s intention to do so for other projects. The objective o f such immediate authorization i s to conduct necessary technical and survey operations, position landmarks, and obtain information on the property. The Expropriating Entity shall communicate the authorizing decree to ESA, together with the information on the project to be executed and a drawing o f the hll project and the real property needed in order to take procedures for expropriating the property in question.

According to Article 3 o f the Executive Regulation o f Law 10, a committee will be formed to determine the properties required for the public interest. The committee i s to be composed of:

A representative o f ESA; A representative o f the local government unit within which jurisdiction the project i s located; The treasurer o f the local area in question.

The committee shall declare i ts activities to the public 15 days prior to the commencement o f i t s works. The land survey department shall verify the information collected by the committee referred to in the preceding paragraph by comparing such information with that found in the official records.

The General Department for Appraisal within ESA shall inspect the property o f the project in question, examine and complete the appraisal maps and l is ts o f transactions concerning the property within the area o f the project. It shall also prepare a consultative report with the estimated compensation for consideration by the Compensation Estimation Committee within ESA.

After depositing the compensation amount by the Expropriating Entity within ESA- the concerned local office-lists o f all real properties and facilities being identified shall be prepared, their areas, location, description, names o f their owners, and holders o f property rights therein, their addresses, and the compensation determined by the Compensation Estimation Committee.

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ESA shall thereafter officially notify the property owners, other concerned parties and the Expropriating Entity with the dates on which the l is ts prepared in accordance with the preceding paragraph shall be presented to them, at least 1 week prior to such presentation. These l i s t s will be posted for a period o f 1 month in the offices o f the concerned local government unit and shall also be published in the Official Gazette and two widespread daily newspapers. Owners o f the properties and holders o f rights therein shall be officially notified with an evacuation request within a period not to exceed 5 months from the date o f their notification.

The holders o f rights include: owners o f beneficiary rights, using rights, housing rights, mortgaging rights, concession rights, hekr right holders

Court o f Cassation decisions have resolved that rights holders are those who hold rights on the tenement and that, accordingly, the holders o f leasing rights are regarded as right holders since they are holders o f personal rights.

It i s further resolved that lease agreements are terminated upon expropriation. Examples are: Court o f Cassation, session o f 1 January 1981 Technical office year 32 and Court o f Cassation, session o f 25 May 1967 Technical office year 18 no. 167. Article (26) o f L a w 577 o f 1954 states, “All the real suits shall not stop the procedures o f the expropriation and shall not stop i t s results. The rights o f the right holders are transferred to the compensation.” Although Law 104 990 does not clearly specify lessees as entitled to compensation, however, lessees implicit ly fall within the group o f “right holders” referred to in the law.

I t i s clear, however, that lessees may not have recourse against the landlord for termination o f their lease agreements as a result o f the expropriation act. Despite that several legal advisors, based on their understanding o f L a w 10/1990, concluded that lessees are not entitled to compensation, in all cases o f land expropriation applied in Egypt so far, lessees were compensated.

Another important issue that has not been addressed in Egyptian law, i s the right o f squatters to be compensated in cases o f displacement or resettlement. The Egyptian legislation framework has not recognized the rights o f squatters whether squatting took place on State private land (where adverse possession applies after 15 years o f peaceful visible and uninterrupted possession) versus those o f State public land (where no adverse possession applies irrespective o f time). However, the Egyptian experiences in dealing with this issue has shown the fact that due to the political pressure and the social dimension, the government has been forced to provide an alternative for those groups o f households whether in terms o f alternative shelter or cash liquidity.

The same has been applied with the issue o f customary ownership north o f the Alexandria-Cairo desert road and along the northern-western coast. Although the laws do not specifically provide any rights for those customary owners, however, this issue has been sensitively dealt with where it exists. In several cases, the adverse possession has been applied. The Egyptian government has recently shifted towards a more strict position against

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this phenomenon and has stopped recognizing the right o f land ownership by those Bedouins who claimed that those lands have been under their custody for long periods. The Case o f Dahab city in South Sinai Governorate i s an example o f this fact. The governorate has previously recognized the right o f customary ownership o f land by Bedouins based on their l iv ing on uncharted land for a sufficient number o f years, accordingly, claimants can buy it at a nominal price from the government despite the lack o f official proofing documents for that. However, since 1986, the governorate stopped this practice and stated that those Bedouins have no legal right on land, which has created several problems between the two parties. Accordingly, this issue would need to be dealt with based o n negotiation and amicable mediation between the Alexandria governorate and local community.

Law No. 3, 1982 for Physical Planning, in i t s Sixth chapter concerning District Renewal (this also applies for slums' redevelopment or resettlement projects) has obliged the concerned local body entitled to renewal to f i rs t plan and prepare the proposed relocation sites where the occupants o f the original area under renewal or redevelopment, would be resettled. The concerned local body should first prepare these relocation sites to be suitable for housing and proceeding different activities o f the relocates prior to their transfer to the new site.

Article 40 o f this law stated that it i s not allowed to commence with the resettlement before at least one month from officially notifying the affected groups with their new destination. Any occupant, who would be subjected to the resettlement and receives a new housing unit, has the right to complain o f i t s unsuitability within 15 days o f receiving the notification to a specialized committee formulated by the concerned Governor. The committee should reach i t s decision concerning the complaint within a maximum one month period. However, the right to complaint does not include the location o f the new resettlement site, rather it i s only limited to the unit itself.

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ANNEX 2: THE CURRENT GRIEVANCE PROCEDURES UNDER EGYPTIAN LAWS AND REGULATIONS

The concerned owners and holders o f rights have the right, within 30 days from the date o f posting and publishing the l i s t s and information o f the expropriated properties, to object to the information contained in such lists. The objection i s made to the main offices o f the Expropriating Entity or the administration to which i t i s attached within the governorate in which the property i s located. In case o f dispute between several individuals or parties on a single property, each party should present all evidences or documents that proof hidher rights within the next 90 days from submitting the memorandum o f objection/ grievance. In case o f failing to submit those required evidences, the grievance would be considered as not submitted. The responsible body for expropriation has the right to request additional documents deemed necessary and define proper period for submitting these documents such as:

Registered contracts Cadastre registers, to determine source o f ownership (or the history o f the properties) Real estate tax registers (the compilation o f these registers depended on the cadastre registers) “Forms o f Change,” which enabled the authorities to determine the changes in ownership o f each property before the date o f completing cadastre. Any official documents recognizing the rights o f the claimers such as court decision “Seha wa Nafaz ”.

The ruling o f the Expropriating Entity on the grievance can be appealed to the court o f f i rst instance within whose jurisdiction the expropriated property i s located. The appeal must be made within 60 days from the date o f notifying the concerned parties with the Expropriating Entity’s ruling on their objection. The Expropriating Entity and the concerned owners and holders o f rights have the right within 4 months from the last date on which the lists and other information are posted (1 month after the posting date) to object to the determination o f compensation by ESA before the competent court o f f i rs t instance. A l i s t o f properties for which no objection or appeal i s made shall be prepared. N o objection or dispute may thereafter arise with respect to these particular properties. Payment made to the owners and holders o f rights in these properties shall be conclusive as to the fulfillment o f the Expropriating Entity’s payment obligations. Non-objecting concerned persons shall execute and sign transfer o f t i t le forms in favor o f the Expropriating Entity. For properties for which signed forms cannot be obtained, a ministerial decree declaring such transfer shall be issued in l i eu thereof. The signed forms and the ministerial decree shall be deposited with the concerned Real Estate Office. The deposit thereof shall result in the full transfer o f title ordinarily associated with a recordation o f a deed o f sale. The non-deposit o f the executed forms or ministerial decree with the concerned Real Estate Office for a period exceeding 2 years from the date o f publishing the expropriating decree shall render the decree as null and void with respect to the properties for which the executed forms or the decree have not been deposited.

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N o objection or appeal shall prevent the property owner or holder o f rights therein from collecting the estimated compensation amount. Under current law and practice, the Government has wide powers in determining whether a project i s a public interest project. This falls within the fbll discretion o f the Government. Accordingly, objections to an expropriation decree cannot interfere with or limit the Government powers in this respect except where there i s a clear misuse or abuse o f this right that amount to bad faith on the part o f the Government. An example o f this bad faith i s a case where a property i s merely expropriated to harm the owner o f the property. Allowable objections are usually based on whether the amount o f compensation i s sufficient or whether the property falls within the area defined under the expropriation decree. The involvement o f right holders usually results in one o f the following scenarios with respect to objection procedures:

0

a) The holders o f rights may object to the amount o f compensation in the event that they are o f the opinion that the decided amount i s not fair and that the title owner has not taken any objection. In such case, the holders o f rights may use the right o f their debtor (the titleholder) to preserve their interest.

b) If the holders o f rights decide not to object to the amount o f compensation on behalf o f the titleholder, they effect an attachment o f the compensation amount to repay amounts due to them from the titleholders, if any.

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ANNEX 3: OUTLINE OF A RESETTLEMENT PLAN

(Reference: OP 4.12, annex A).

I. Description o f the sub-project and o f i t s potential land impacts 1.1

1.2 Potential impacts. Identification o f

resettlement;

General description o f the project and identification o f the project area

I .2.1 the project component or activities that give rise to

1.2.2 the zone o f impact o f such component or activities; I .2.3 the alternatives considered to avoid or minimize

resettlement; and 1.2.4 the mechanisms established to minimize resettlement, to

the extent possible, during project implementation. 2. 3.

Objectives. The main objectives o f the resettlement program. Socio-economic studies and census of affected assets and affected livelihoods. The findings o f socio-economic studies and census to be conducted with the involvement o f potentially displaced people, include: 3. I

3.2

3.3

3.4

3.5

3.6

the results o f a census survey covering current occupants o f the affected area to establish a basis for the design o f the resettlement program and to exclude subsequent inflows o f people from eligibility for compensation and resettlement assistance; standard characteristics o f displaced households, including a description o f production systems, labor, and household organization; and baseline information on livelihoods (including, as relevant, production levels and income derived from both formal and informal economic activities) and standards o f living (including health status) o f the displaced population; the magnitude o f the expected loss-total or p a r t i a l - o f assets, and the extent o f displacement, physical or economic; information on vulnerable groups or persons as provided for in Op 4.12, para. 8, for whom special provisions may have to be made; provisions to update information on the displaced people's livelihoods and standards o f living at regular intervals so that the latest information i s available at the time o f their displacement. Other studies describing the following 3.6.1 land tenure and transfer systems, including an inventory

o f common property natural resources from which people derive their livelihoods and sustenance, non-title- based usufruct systems (including fishing, grazing, or use o f forest areas) governed by local recognized land allocation mechanisms, and any issues raised by different tenure systems in the project area;

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4.

5.

6.

7.

3.6.2the patterns o f social interaction in the affected communities, including social networks and social support systems, and how they will be affected by the project;

3.6.3 public infrastructure and social services that will be affected; and

3.6.4 social and cultural characteristics o f displaced communities, including a description o f formal and informal institutions (e.g. , community organizations, ritual groups, nongovernmental organizations (NGOs)) that may be relevant to the consultation strategy and to designing and implementing the resettlement activities.

Legal and Institutional Framework. 4. I Summary o f the information included in this RPF 4.2 Local legal specificities if any 4.3 Local institutional specificities

4.3.1 identification o f agencies locally responsible for resettlement activities and NGOs that may have a role in proj ect implementation;

4.3.2 assessment o f the institutional capacity o f such agencies and NGOs; and

Eligibility and entitlements. Based on the definitions and categorization in this RPF (see entitlement matrix), definition o f displaced persons and criteria for determining their eligibility for compensation and other resettlement assistance, including relevant cut-off dates. Valuation o f and compensation for losses. The methodology to be used in valuing losses to determine their replacement cost; and a description o f the proposed types and levels o f compensation under local law and such supplementary measures as are necessary to achieve replacement cost for lost assets. Resettlement measures: 7.1

7.2

7.3

7.4 7.5 7.6

7.7

Description o f the packages o f compensation and other resettlement measures that will assist each category o f eligible displaced persons to achieve the objectives o f the policy (see OP 4.12, para. 6). Site selection, site preparation, and relocation. Alternative relocation sites considered and explanation o f those selected. Legal arrangements for regularizing tenure and transferring t i t les to resettlers. Housing, infrastructure, and social services. Environmental protection and management. Community participation. Involvement o f resettlers and host communities Integration with host populations. Measures to mitigate the impact o f resettlement on any host communities

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7.8 Specific assistance measures intended for vulnerable people, to be identified for instance amongst those listed in the relevant section o f the RPF

Grievance procedures. Based on the principal mechanisms described in this RPF, description o f affordable and accessible procedures for third-party settlement o f disputes arising from resettlement; such grievance mechanisms should take into account the availability o f judicial recourse and community and traditional dispute settlement mechanisms. Organizational responsibilities. The organizational framework for implementing resettlement, including identification o f agencies responsible for delivery o f resettlement measures and provision o f services; arrangements to ensure appropriate coordination between agencies and jurisdictions involved in implementation; and any measures (including technical assistance) needed to strengthen the implementing agencies' capacity to design and carry out resettlement activities; provisions for the transfer to local authorities or resettlers themselves o f responsibility for managing facilities and services provided under the project and for transferring other such responsibilities from the resettlement implementing agencies, when appropriate.

I O . Implementation schedule. Based on the template presented in the RPF, present an implementation schedule covering al l resettlement activities f rom preparation through implementation, including target dates for the achievement o f expected benefits to resettlers and hosts and terminating the various forms o f assistance. The schedule should indicate how the resettlement activities are linked to the implementation o f the overall project. Costs and budget. Tables showing itemized cost estimates for al l resettlement activities including allowances for inflation, population growth, and other contingencies; timetables for expenditures; sources o f funds; and arrangements for timely f low o f funds, and funding for resettlement, if any, in areas outside the jurisdiction o f the implementing agencies.

8.

9.

11.

12. Monitoring and evaluation. Arrangements for monitoring o f resettlement activities by the implementing agency, supplemented by independent monitors as considered appropriate by the Bank, to ensure complete and objective information; performance monitoring indicators to measure inputs, outputs, and outcomes for resettlement activities; involvement o f the displaced persons in the monitoring process; evaluation o f the impact o f resettlement for a reasonable period after all resettlement and related development activities have been completed; using the results o f resettlement monitoring to guide subsequent implementation.

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ANNEX 4: OUTLINE OF AN ABBREVIATED RESETTLE-MENT PLAN

Depending on the magnitude o f the displacement, an Abbreviated Resettlement Plan (ARP) should be between 10 and 25 pages, including annexes.

1. Brief Description o f the Sub-project 1.1. Sub-project Land Needs 1.2. Land Needs Justification and Minimization

2. Census Survey o f Displaced Persons and Valuation o f Assets 2.1. Methodology 2.2. Results

3. Affected Assets 4. Socio-Economic Features and Affected People’s Livelihoods 5, Description o f Compensation and Other Resettlement Assistance 6. Consultation with Displaced People 7. Procedures for Grievance Redress 8. Monitoring and Evaluation 9. Institutional Responsibilities and Arrangements for Implementation 10. Timetable, Budget and Funding Arrangements

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